1: CSX CORP. 1500 Federal Reserve Building Richmond, Va. 23219
REVENUE: $7.93 billion PROFITS: $465 million EARNINGS PER SHARE: $3.15 DIVIDEND: $1.04 ASSETS: $11.64 billion STOCKHOLDERS' EQUITY: $4.91 billion RETURN ON EQUITY: 9.5 percent EXCHANGE: NYSE EMPLOYES: 59,400 TOP EXECUTIVE: Hays T. Watkins, chairman and chief executive officer FOUNDED: 1980 DESCRIPTION: CSX is a holding company with interests in railroads, barge lines, trucking and minerals. It controls 27,000 miles of railroad in 22 states, making it the nation's second-largest railroad operator. Formed five years ago when Chessie System Inc. merged with Seaboard Industries Inc., CSX expanded its transportation and natural resource interests, acquiring the natural gas transmission pipeline and the oil and gas exploration and development interests of Texas Gas Resources in 1983. Last year, CSX acquired control of the former Texas Gas barging subsidiary, American Commercial Lines Inc. CSX also has realty interests in Washington, Virginia and Florida, and operates The Greenbriar, a resort hotel in West Virginia.
DEVELOPMENTS: CSX Corp. had record earnings in the fiscal year ended Dec. 31, helped by $2.5 billion in revenue from its Texas Gas Resources subsidiary. The company also attributed the 70 percent leap in profits to a heavy stockpiling of coal by utility companies in anticipation of a strike that never occurred. The CSX rail units recorded a 6 percent increase in commodity traffic, mostly in the metals, automotive and intermodal markets.
One of the most important events of 1984 was the Interstate Commerce Commission's approval of CSX's merger with the country's largest barge company, American Commercial Lines. The decision, a landmark in the deregulation of the transportation industry, was upheld by a federal appeals court in October, despite opponents' arguments that the merger would reduce competition and raise coal prices. CSX said its expanded group of transportation companies would allow it to offer a "one-stop shipping service," which permits customers to make one call for the whole haul.
On the realty front, CSX and its development partners continued construction on two major mixed-use projects -- Washington Harbour in Georgetown, and James Center in Richmond. Construction also began on the U.S. Postal Service general mail-handling facility for the Washington area.
Earlier this year, CSX agreed to sell its Beckett Aviation Inc. division to Aero Services International Inc. for an undisclosed price. CSX said that the sale of Beckett, which operates aviation facilities at 11 airports throughout the country, is consistent with its long-term objective to focus on freight transportation and natural resources. 2: REYNOLDS METALS CO. 6601 W. Broad St. Richmond, Va. 23261
REVENUE: $3.73 billion PROFITS: $137.3 million EARNINGS PER SHARE: $6.36 DIVIDEND: $1 ASSETS: $3.78 billion STOCKHOLDERS' EQUITY: $1.34 billion RETURN ON EQUITY: 10.7 percent EXCHANGE: NYSE EMPLOYES: 28,800 TOP EXECUTIVES: David P. Reynolds, chairman and chief executive officer; William O. Bourke, president and chief operating officer FOUNDED: 1928
DESCRIPTION: Reynolds Metals is the nation's second-largest aluminum producer behind Alcoa; its operations mine and refine bauxite and fabricate the resulting aluminum into hundreds of products. The company produces Reynolds Wrap aluminum foil, other consumer products, beverage cans, building and construction materials, solar hot-water heating systems and electrical wire and cable. It also licenses technology, sells proprietary manufacturing systems and provides specialized technical services.
DEVELOPMENTS: Reynolds' earnings recovered strongly in the fiscal year ended Dec. 31. Sales were up 12 percent over 1983, and the company posted a $137.3 million profit compared with a $99.1 million net loss the year before. Reynolds said cost-cutting efforts and the company's diverse mix of products contributed to the higher earnings.
Reynolds bought a 6 percent stake in a bauxite mining project in the Republic of Guinea from Martin Marietta Aluminum in February 1984. The company also is extending its aluminum can-making operations into Canada, and is exploring possible sites in the provinces of Quebec and Ontario, as well as in Western Canada.
Reynolds temporarily shut down two aluminum production lines at its Jones Mill plant in Arkansas last August, citing uncertainty about the state's energy future. A month later, the company announced it was shutting down its Hurricane Creek chemical products facility in Bauxite, Ark., because the demand for chemical products was weaker than had been anticipated. 3: NORFOLK SOUTHERN CORP. One Commercial Place Norfolk, Va. 23510
REVENUE: $3.52 billion PROFITS: $482.2 million EARNINGS PER SHARE: $7.66 DIVIDEND: $3.20 ASSETS: $8.67 billion STOCKHOLDERS' EQUITY: $4.47 billion RETURN ON EQUITY: 11.1 percent EXCHANGE: NYSE EMPLOYES: 37,998 TOP EXECUTIVES: Robert B. Claytor, chairman and chief executive officer; Harold H. Hall, president and chief operating officer FOUNDED: 1982
DESCRIPTION: Norfolk Southern Corp. is a holding company that controls two major operating railroads, Norfolk and Western Railway Co. and Southern Railway Co. The railways form a single interterritorial system extending over 17,800 miles in 20 states, primarily in the Southeast and Midwest, and in the Canadian province of Ontario.
DEVELOPMENTS: Norfolk Southern reported record earnings for the fiscal year ended Dec. 31, and is bidding for expanded rail coverage and corporate diversification as it moves rapidly toward its goal of becoming a total transportation company offering "thoroughbred service" throughout much of the United States.
The company said profits jumped by 35 percent over 1983, while revenue climbed by 12 percent. It attributed the improvement to increased coal and merchandise traffic.
Norfolk Southern is in the midst of acquiring the government-owned Consolidated Rail Corp. (Conrail). If the acquisition is approved, Norfolk Southern would become the nation's largest railroad company, a giant with revenue of almost $7 billion and more than 30,000 miles of track serving 25 states, the District of Columbia and Canada. Transportation Secretary Elizabeth Hanford Dole has recommended that Congress approve Norfolk Southern's proposal to pay $1.2 billion for the government's 85 percent stake in Conrail. The company would pay another $375 million for the 15 percent owned by Conrail's employes.
Opponents of the merger -- which include Conrail management, the Pennsylvania Coal Mining Association and Richmond railroad rival CSX Corp. -- fear the merger would hurt competition and lead to higher shipping rates and higher prices for commodities such as coal, grain, chemicals, auto parts and paper products. Supporters believe that the merger would create a more efficient rail system.
Last month, Norfolk Southern was given a shot at extending its transportation routes when the Interstate Commerce Commission approved the company's proposal to purchase North American Van Lines from PepsiCo Inc. for $315 million. If the ICC decision is not challenged in court, it could represent the first acquisition of a major trucking company by a major railroad. 4: DOMINION RESOURCES INC. 1 James River Plaza P.O. Box 26532 Richmond, Va. 23261
REVENUE: $2.6 billion PROFITS: $293.3 million EARNINGS PER SHARE: $3.46 DIVIDEND: $2.60 ASSETS: $8.1 billion STOCKHOLDERS' EQUITY: $2.5 billion RETURN ON EQUITY: 11.7 percent EXCHANGE: NYSE EMPLOYES: 13,300 TOP EXECUTIVES: T. Justin Moore Jr., chairman; William W. Berry, president and chief executive officer FOUNDED: 1909 DESCRIPTION: Dominion Resources is a holding company with one active subsidiary. Formerly known as Virginia Electric and Power Co. (Vepco), that subsidiary now comprises Virginia Power, North Carolina Power, West Virginia Power and Virginia Natural Gas. Regulatory approval of plans for other subsidiaries is pending. Dominion provides electric service for nearly 3.8 million people over 32,000 square miles, including northeastern North Carolina, five counties in West Virginia and 80 percent of Virginia's population. The utility generates electricity through four nuclear, 14 coal-fired, three oil-fired, and nine small hydroelectric units. Electric operations account for 95 percent of Dominion's revenue.
Virginia Natural Gas provides natural gas to more than 1 million people in Tidewater Virginia.
DEVELOPMENTS: Even with a drop in earnings during the fourth quarter because of warmer-than-usual weather, Dominion reported a 10 percent rise in profits for the year ended Dec. 31. For the first time since the Arab oil embargo, the market price of the company's common stock exceeded its book value. The ratings of Dominion's bonds and other securities were upgraded by five rating services.
Dominion's new $1.7 billion Bath County pump storage hydroelectric power project -- the world's largest -- is expected to begin operation in 1985, and the company has signed long-term contracts to purchase power from midwestern utilities at a low price. Those two energy sources, combined with current generating capacity, are expected to take care of Dominion's electricity requirements until 1993.
Dominion also is launching an ambitious research and development program that it hopes will produce high-technology, alternative energy sources. The projects include a 50-kilowatt solar photovoltaic plant in central Virginia and a 40-kilowatt electrochemical fuel cell in the Tidewater region. 5: JAMES RIVER CORP. Tredegar Street P.O. Box 2218 Richmond, Va. 23217
REVENUE: $2.3 billion PROFITS: $98 million EARNINGS PER SHARE: $2.96 DIVIDEND: 40 cents ASSETS: $1.46 billion STOCKHOLDERS' EQUITY: $466.7 million RETURN ON EQUITY: 22.3 percent EXCHANGE: NYSE EMPLOYES: 21,000 TOP EXECUTIVE: Brenton S. Halsey, chairman and chief executive officer FOUNDED: 1969
DESCRIPTION: James River is engaged primarily in manufacturing, converting and marketing paper and related products, such as Northern bathroom tissue and napkins and Brawny paper towels. The company processes basic raw materials, including wood, wood pulp, synthetic fibers and plastic resins, into such products as sanitary papers, folding cartons and disposable food service products. It also makes communication papers and specialty industrial and packaging papers.
DEVELOPMENTS: During its 15 years in business, James River has pursued an acquisition and operating strategy that has expanded and diversified its products and business. It continued on this path earlier this year when it signed a letter of intent to acquire the assets of Ozalid Corp., a manufacturer of sensitized paper and film products.
The assets include a coated-paper and coated-film plant in Johnson City, N.Y.; coated-paper plants in Arlington, Tex., La Habra, Calif., and Elyria, Ohio, and distribution centers throughout the country. Sales at Ozalid exceed $60 million, James River said.
"Ozalid is a leader in the manufacture and marketing of consumable engineering design materials," James River said in a recent report to shareholders. "In combination with James River Graphics, this acquisition will place James River in a strategic position to capitalize upon accelerating growth in the engineering design market stemming from increased use of computer-aided design and will provide further forward integration in specialty papers." 8: EASTMET CORP. P.O. Box 1975 Baltimore, Md. 21230
REVENUE: $238.9 million LOSS: $16 million LOSS PER SHARE: $3.19 DIVIDEND: None ASSETS: $146.6 million STOCKHOLDERS' EQUITY: $33.7 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 1,435 TOP EXECUTIVES: George R. Walsh, chairman and chief executive officer; William F. Dausch, president and chief operating officer FOUNDED: 1919
DESCRIPTION: Eastmet is a metals manufacturer with two business segments: the Stainless Steel Group, which makes stainless steel products; and the Industrial Products Group, which produces engineered and fabricated metal products and cast-metal and molded-plastic parts.
DEVELOPMENTS: The most severe steel recession since World War II accounted for two of the worst quarters in Eastmet's history during the latter half of the fiscal year ended Dec. 31. Now the company faces the problem of returning to profitability in uncertain market conditions.
Eastmet is trimming costs to lower its break-even point, including reducing management staff by 30 percent, consolidating its corporate offices, and streamlining production.
In January Easco concluded labor negotiations with members of the United Steelworkers union at its Eastern Stainless unit. Under the agreement, labor costs will be reduced by approximately $5 per hour in exchange for a profit-sharing plan.
The company announced a loss of $6.5 million ( .30 per share) for the first quarter ended March 31, compared with a $1.6 million profit (32 cents) for the first three months of 1984. The company said that substantial liquidation of inventory items contributed to its losses. 9: MONUMENTAL CORP. 1111 N. Charles St. Baltimore, Md. 21201
REVENUE: $222.2 million PROFITS: $8.3 million EARNINGS PER SHARE: $1.27 DIVIDEND: $1.25 ASSETS: $960.9 million STOCKHOLDERS' EQUITY: $201.8 million RETURN ON EQUITY: 7.8 percent EXCHANGE: OTC EMPLOYES: 1,778 TOP EXECUTIVE: Leslie B. Disharoon, chairman and president FOUNDED: 1968
DESCRIPTION: Monumental Corp. is an insurance holding company whose subsidiaries market life and health insurance and annuity products to middle-income consumers. The company sells individual policies through home-service agents and brokers of payroll deduction plans. It also markets supplemental insurance coverage by direct mail through financial institutions, and it sells credit insurance through banks and car dealerships. DEVELOPMENTS: Monumental's revenue jumped 20 percent in the fiscal year ended Dec. 31. Profits, however, declined by more than 40 percent from 1983 figures, and Monumental said a $7 million write-off of deferred acquisition costs cut into earnings for the fourth quarter and the year.
Monumental made a major change in direction last year by selling its Volunteer State Life Insurance Co. subsidiary, which concentrates primarily on the upper-income market, to Chubb Corp. Monumental said it plans to focus on the middle-income market, and retained Volunteer's credit life and health businesses, consolidating them into Monumental General Insurance Co. The company also sold its Sid Murray Co. unit to Michael R. Murray, an executive in the subsidiary. 10: GENERAL DEFENSE CORP. 230 Schilling Plaza Hunt Valley, Md. 21031
REVENUE: $168.1 million PROFITS: $14.2 million EARNINGS PER SHARE: $1.74 DIVIDEND: 84 cents ASSETS: $127.6 million STOCKHOLDERS' EQUITY: $30.8 million RETURN ON EQUITY: Not available EXCHANGE: Amex EMPLOYES: 2,300 TOP EXECUTIVE: Henry D. Clarke Jr., chairman FOUNDED: 1980
DESCRIPTION: General Defense develops, engineers, and manufactures military products for the federal government, including tank ammunition for the U.S. Army. International customers include the governments of Egypt, Turkey and Pakistan.
DEVELOPMENTS: Increased sales of tank ammunition to the U.S. government